The Impact of Integrated Reporting on Improving the Quality of Financial Reporting

Abstract

Purpose: The aim of this study is to demonstrate the impact that integrated reports on the quality of the financial report by analyzing the relationship between them. The current study aims to It applies it to the 132 companies listed in the Iraq Stock Exchange for the year 2022. Theoretical framework: The nature of integrated reports: Company reports are an essential means through which decision-making information can be delivered to stakeholders. So corporate reports must keep pace with the expansion of commercial activities and the development of economic reality and meet the needs of stakeholders. Design/methodology/approach: For the purposes of data analysis, the researchers used the statistical program (SPSS & Amos) version XXV. Findings: The results of the study concluded by rejecting the null hypothesis and accepting the alternative hypothesis as follows which is there is a statistically significant effect of disclosure according to the integrated reports on the quality of the financial report, as measured by the accounting options gap. Research, Practical & Social implications: The study need arose for other reports that support and improve the quality of financial reports and contain financial and non-financial information due to the need of stakeholders for this type of reporting, which is called integrated reports. These reports are able to provide information related to strategy, risk, performance, governance and future expectations in one report. Originality/value: The value of the study is to reduce the asymmetry of information between investors through the disclosure of financial and non-financial information, the disclosure of this type of reports can increase the confidence of stakeholders in financial reports and support them and thus make sound decisions for investment. The integrated reports provide reports on the six capitals, the main objective of these reports is to improve the quality of the information that is provided by the authority, whether financial or non-financial.